End of strike in sight as NUM agrees to deal

But Amcu members have not signed yet

THE BIGGEST union of South African coal producers, including Anglo American and Glencore, agreed to sign a pay deal with operators yesterday, ending a strike that started a week ago.

“The end is in sight,” said Peter Bailey, the chief negotiator for the National Union of Mineworkers (NUM), after a meeting at the Chamber of Mines, a lobby group for the companies. “The parties have now agreed and the end of the strike will be communicated between the management and branch leadership.”

Producers, including Anglo, Glencore and Exxaro Resources, tabled a revised two-year deal on Friday. Further adjustments to the deal were made on Monday.

The agreement was for an extra R750 to R1 000 monthly, Bailey said.

The NUM, which represents 72 percent of the 17 000 employees covered by the wage deal, had been demanding increases of as much as 14 percent for its members. The producers and unions began conciliation talks after reaching a deadlock in negotiations in August.

The strike was the first related to wage negotiations in coal since 2011.

The industry directly employs almost 90 000 people, including contractors, and paid about R19 billion in wages in 2014, according to the chamber’s website.

Labour relations in the coal sector are regarded as more stable than in gold or platinum because there are fewer workers and more machinery. The fossil fuel powers most of the country’s electricity generation.

The labour action was a threat to state-owned utility Eskom, which supplies about 95 percent of the nation’s power.

However, the Association of Mineworkers and Construction Union (Amcu) rejected the wage offer, a union official said.

About 200 Amcu members went on strike on October 5 at a small coal operation east of Johannesburg.

The union said it was “not in agreement” with the latest offer tabled by the chamber.